Basel IV Regulations Impact for Banking Industry

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News Date: May 8, 2023

Basel IV Rules Will Arrive and Complicate Bank Lives Even Further.
New Banking Rules Will Tighten Credit Standards, according to Morgan Stanley.
According to Morgan Stanley analysts, the Fed will issue new bank capital regulations between late May and early July, which will be followed by a comment period and a final rule that will be implemented gradually between 2025 and 27.
For their US Large-Cap Banks coverage, they anticipate that the implementation of this Basel IV, often known as the 'Basel III Endgame,' will result in increased risk-weighted assets (RWAs) and capital requirements, with a focus on Global Systemically Important Banks (GSIBs).
The name 'Basel' comes from the city of Basel in Switzerland, where the Basel Committee on Banking Supervision was established in 1974.
The committee is made up of representatives from central banks and regulatory authorities from around the world, and its primary goal is to promote international financial stability by developing and promoting supervisory standards and guidelines for the banking industry.

China astounding Gold reserves to be revealed in CDBC announcement

China hoarded an enormous amount of the precious metal.
China Gold reserves to be revealed in Central Bank Digital Currency announcement that threatens U.S. currency hegemony.
It is expected a major announcement of Chinese gold holdings that would astound most analysts would probably be accompanied with any Central Bank Digital Currency release and mention of gold backing.
Source: asiamarkets

US House Passes Anti-CBDC Bill

The US House of Representatives passed the CBDC Anti-Surveillance State Act, which aims to ban the Federal Reserve from creating a Central Bank Digital Currency (CBDC).
The bill, passed with a vote of 216 to 192, saw support from 213 Republicans.
It prevents any pilot programs for a CBDC before they are proposed and restricts the Federal Reserve and the Department of Treasury from issuing a CBDC without Congressional approval.
Additionally, the bill ensures that the Fed cannot issue a retail digital currency that could be used for citizen surveillance.
Majority Whip Emmer emphasized that the bill is a response to the current administration's lack of clarity and guidance on digital assets, arguing that an improperly managed CBDC could significantly impact American lives.

BRICS currency officially announced

The Kremlin has announced the development of a blockchain-based payment system within the BRICS alliance.
Kremlin aide Yury Ushakov emphasized the importance of creating an independent BRICS payment system using modern tools like digital technologies and blockchain, aiming for convenience, cost-effectiveness, and non-political influence.
The focus for the year is to enhance BRICS's role in the international monetary system, with an emphasis on increasing settlements in national currencies and strengthening correspondent banking networks.
Work will continue on the Contingent Reserve Arrangement, particularly focusing on currencies other than the US dollar, as outlined in the 2023 Johannesburg Declaration.

Polyus gold miner to switch the currency to rubles

Polyus wins bondholder approval to switch currency for Eurobond payments.
Russia's largest gold miner Polyus has received permission from holders of three Eurobonds to make payments on the debt in Russian roubles or another alternative currency, the company said on Friday.
Sources: reuters.com

Sound Money Is Defending Liberties

It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of right.
Our monies - represent fiat currencies, monopolized by the state.
Fiat money is economically and socially destructive - with far-reaching and seriously harmful economic and societal consequences, effects that extend beyond what most people would imagine.
A free market in money means that people have the freedom to choose the kind of money they wish to use and that people have the freedom to provide their fellow men with alternative goods that may serve them well as money.
Sources:www.zerohedge.com